Australia’s share market is wavering ahead of a widely anticipated interest rate increase, as high oil prices continue to pressure price growth.
The benchmark S&P/ASX200 index rose two points by midday on Tuesday, to be up 0.02 per cent to 8,681.7, as the broader All Ordinaries gained 5.1 points, or 0.06 per cent, to 8,855.8.
Financial markets expect the Reserve Bank of Australia to hike the official cash rate for a fourth time in 2026 to 4.6 per cent at 2.30pm AEST.
“Governor Michele Bullock’s press conference an hour later will be essential viewing to gauge how aggressively the central bank views lingering domestic price pressures,” Moomoo chief market strategist Tapas Strickland said.
“Monthly CPI on Wednesday will also give a steer on whether the RBA follows up with another hike as soon as Melbourne Cup Day, when markets are 43 per cent priced in for another.”
The technology sector charged 4.6 per cent higher after a strong trading update from drone parts manufacturer Codan and a contract win for data centre player Megaport.
Energy stocks tumbled despite Brent crude oil holding roughly steady at around $US106 a barrel, with Qatari mediators set to hold separate peace talks with US and Iranian officials.
Woodside and Santos each fell more than 1.6 per cent, while refinery operators and coal producers also sold off.
Raw materials rebounded with a 0.8 per cent uplift as BHP shares gained more than one per cent to trade at $60.45, with copper’s recent retreat losing pace.
Gold stocks were mixed as the precious metal found buying support near $US4,136 ($A5,895) an ounce, helping the sub-index inch 0.3 per cent higher.
The heavyweight financials sector fell 0.6 per cent, with all big four banks in the red after a strong start to the week.
Real estate trusts were also in the doldrums ahead of the expected interest rate increase, the segment down 1.2 per cent on Tuesday and tumbling by almost a fifth in 2026.
An early bounce in consumer discretionaries had eased to a 0.4 per cent lift by lunchtime, while staples slipped 0.2 per cent.
In company news, Cochlear is facing a class action from investors who allege the group failed to keep them updated ahead of slashing its profit guidance in April, which preceded a 40 per cent share price crash.
Goodman Group shares fell 1.5 per cent after it scrapped plans to build a $1.2 billion data centre near residential homes in Sydney’s north shore.
Pinnacle Investment rebounded almost seven per cent to $13.81 after an upgrade from investment bank UBS, which lifted its price target to $18 per share.
The Australian dollar was trading at 70.16, down slightly from 70.18 US cents on Monday at 5pm.
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